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Utility Rates

More PJM Capacity Market Changes

The more things change, the more things need to change with the PJM Interconnection, LLC (PJM) capacity construct. On December 9, 2024, PJM filed additional capacity market changes with the Federal Energy Regulatory Commission (FERC) in Docket No. ER25-682-000. The changes...

FERC Issues order on Return on Equity Methodology

On October 17, 2024, FERC issued an Order on Remand regarding the August 9, 2022, United States Court of Appeals for the District of Columbia Circuit decision to vacate and remand the Opinion Nos. 569 series of decisions. In Opinion Nos. 569, FERC relied on the three models...

Examination of Utility Betas

Utility Betas: A Review of the Continued Impact on Estimates Resulting from the COVID-19-Related Market Volatility Download PDF If you are active in regulatory cost of capital proceedings for utilities, you likely will have noticed that the CAPM method has been producing...

Troubled Waters for Utility Rates

Let’s start with a thought experiment. Pick a submarine movie. Take your time, I’ll wait. Got it? Now, go ahead and picture an iconic or memorable scene from that movie. Several great sub movies from the 90s pop into mind for this Gen Xer – Crimson Tide, The Hunt for Red...